Homeowners Claim Decision Tool
Evaluate the tradeoffs between filing a homeowners insurance claim or paying out of pocket.
Small claims can carry long-term costs that aren’t always obvious.
Incident Details
Policy Details
Liquidity & Sensitivity
Comparative Analysis
Includes deductible + estimated 3-year premium surcharge.
Total immediate repair cost with no insurance involvement.
Based on your inputs, filing a claim is estimated to cost $1,050 less over time.
Paying out of pocket may require additional liquidity.
Understanding the Tradeoffs
Premium Surcharges
Insurers often increase premiums for 3-5 years following a claim. This "invisible" cost can sometimes exceed the payout you receive today.
Claim Frequency Sensitivity
Filing multiple small claims in a short window can lead to non-renewal or placement in a high-risk insurance pool with significantly higher rates.
The "Deductible Buffer"
If a repair cost is only slightly above your deductible, the immediate benefit is often negated by the long-term premium impact and loss of "claims-free" discounts.
Liquidity vs. Leverage
Paying out of pocket preserves your insurance record but consumes liquidity. Claims leverage your policy but "spend" your future premium stability.